New Delhi, Aug. 29 -- The ongoing trade war between North American neighbours of US and Canada is being driven by a widening gap between how Washington and Ottawa view their economic relationship apart from rhetoric across the border. While US President Donald Trump argues that Canada has taken advantage of the United States and that Washington holds the upper hand, Canadian Prime Minister Mark Carney has framed the dispute as a fight over sovereignty, jobs and Canada's ability to diversify its economy.

The differences came into focus after weeks of negotiations between the two countries collapsed, with both sides accusing the other of demanding too much. These key issues remain the heart of the escalating trade war.

Trump has repeatedl...